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Inquiry to go ahead despite witness doubts

An inquiry into alleged corruption at Peel Health Campus should go ahead despite the star witness now facing serious questions about her own honesty, West Australian Premier Colin Barnett says.

Ashton Foley, the former chief executive of the hospital turned whistleblower, was forced to admit over the weekend that she had been arrested and jailed in the United States in 2008 over fraud and identity theft charges.

Ms Foley had previously made a series of explosive allegations to a parliamentary committee about the hospital, including claims doctors were being paid cash bonuses for admitting patients.

Operator Health Solutions WA repaid almost $1.8 million to the state's Health Department on the back of those allegations, while the parliamentary committee praised her for putting "the interests of the people of Western Australia above those of her own".

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On Monday, Mr Barnett said it was the intention of the state government that an inquiry into Peel Health Campus would go ahead, but it was now up to retired neurosurgeon Bryant Stokes, who would head the inquiry, to assess the credibility of Ms Foley's statements and decide whether to proceed with the probe.

Mr Barnett said Ms Foley was "clearly of dubious character" and the public sector commissioner must look at the vetting process behind her employment with the hospital.

As to whether she should give evidence to any inquiry, Mr Barnett said, "I for one would be sceptical".

Mr Barnett also slammed the opposition, particularly its health spokesman Roger Cook, for running hard with Ms Foley's claims, saying Labor candidate for Mandurah David Templeman and the party's leader Mark McGowan had milked the scandal for political mileage, which he labelled "reprehensible".

"Mark McGowan, Roger Cook, David Templeman used this issue to discredit the (Liberal) candidate for the seat of Mandurah Tony Solin because he also had a working association with the hospital," the Premier told reporters."And what they did by doing that was to undermine public confidence in the existing hospital and undermine investor confidence in expanding that hospital.

"So today, I simply say to Mark McGowan and Roger Cook in particular and David Templeman ... you owe Tony Solin an apology.

"You could also say, why did that committee put such faith in her testimony?

"Labor took it as gospel."

Mr Barnett said WA Labor had either been duped by Ms Foley or were "willing accomplices."